Global skills shortage “biggest ever” due to AI

AI has created the world’s biggest and fastest developing tech skills shortage in over 15 years, according to a new report by recruitment company Harvey Nash and digital consultancy Nash Squared.

The report, which surveyed 2,015 technology leaders in 62 countries, found that AI has jumped from the sixth most scarce technology skill to number one in just 18 months, which is the steepest and largest jump in any technology skills shortage recorded for over 15 years.

Just over half of technology leaders said they are suffering a skills shortage compared to 28 per cent last year.

Harvey Nash and Nash Squared said that the AI skills shortage is linked to “significant growth” in AI investment, with around 90 per cent of global technology leaders now reporting they are either piloting AI or investing in AI developments. This has increased from 59 per cent in the previous year’s report.

Despite this steep rise, around two thirds of all technology leaders said they have not received measurable ROI from piloting AI, while larger firms were more likely to report a measurable return.

The companies said that technology leaders are still working out how to respond to the skills gap, with as many as 52 per cent not currently upskilling their employees in GenAI.

While the report found that technology leaders expect around a fifth of jobs will be fulfilled in AI, leaders are changing the people they hire.

Around 65 per cent of technology leaders said they would choose an AI-enabled software developer with just two years’ experience over one with a five-year career but without AI skills.

Bev White, chief executive of Nash Squared said that businesses have a pressing need to ensure their technology teams are equipped with the skills to leverage AI to full effect, or the implementations they are making could fall short.

“As AI is so new, there is no ‘playbook’ here – it’s about a mix of approaches including formal training where available, reskilling IT staff and staff outside of the traditional IT function to widen the pool, on-the-job experimentation, and knowledge sharing and transfer,” she added. “This needs to coincide with the development of a new operating model where AI is stitched in.”